HELLERTOWN PUTS OFF ACTION ON BUDGET AS FIGURES CHANGE

TAD MILLER, The Morning CallTHE MORNING CALL

Hellertown Borough Council last night postponed final adoption of its budget because of a drastic change in the general fund budget from $275,000 in October to a projected year-end balance of $105,000, as figured by the borough manager.

The projected $105,000 year-end balance would be well short of the projected opening balance of $180,000 for 1986, which Manager James Sigworth thought was a conservative figure.

Council tabled final adoption of the budget until Monday, when they hope they will know the actual projected opening balance for 1986.

Council President Nicholas Kiak said Sigworth told him the discrepancy is probably an accounting procedure that he is unaware of. Kiak said Sigworth told him the calculation is probably not correct, but he suggested postponing final budget changes or adoption to be safe.

"Before we act, we want to know what we're looking at," Kiak said.

Sigworth said they are not questioning figures provided in the accountant's report, they are insteadquestioning if Sigworth's projections are correct and are trying to see if $180,000 is still a safe opening cash balance estimate.

"We're nowhere near $180,000," Sigworth said. "We have a discrepancy. We can't understand how the accountant is coming up with (the 1986 opening cash balance figure)."

"The reports over the weekend were eye-opening to all of us," Kiak said, asking for council's indulgence. He then proposed tabling the matter until an answer is received.

Sigworth said he found the discrepancy Friday and alerted council as well as W.N. Serfass & Co., the borough's accounting firm.

He said The Sept. 30 financial statement showed a balance of $237,000. That was followed by an October report showing an increased balance of $275,000. Sigworth said that at this point the $180,000 estimate to start 1986 with seemed conservative.

However, the November financial statement, received on Friday, showed a drastic drop in its balance to $184,000.

Sigworth said the balance further dropped when he compared figures to see if projections would increase that balance for December. He projected receipts would be $53,320.82 and expenditures would be $127,872.49, dropping the projected balance to $105,000.

Officials from the accounting firm have been contacted and asked to examine the figures, Sigworth said. He added that a decline in revenue is often experienced in the latter months of the year, since most borough service collections have already been made.

However, he said the drop seems too drastic compared to the averages of the last three years. Unable to find any mistakes or logical answers, he said the difference must be an accounting procedure that he is not aware of.

Council also voted 6-1 for a tenta- tive settlement for a two-year contract for non-uniformed borough employees. The settlement provides a 48- cent-per-hour, across-the-board increase, or an average of 6.24 percent. The increase is close to the projected 6-percent estimate the borough intended to budget for 1986. Councilman Joseph Gushen cast the negative vote.

Council also accepted the resignation of Leon A. Fulton as secretary of the borough Civil Service Commission.

Kiak said Fulton did not specify his reasoning in his letter of resignation. But Councilman Richard Fluck, also a member of the commission, said at the meeting, "In light of things that transpired over the last week, he decided to step down."

A question has been raised about whether to hire one or two full-time police officers to fill the two current openings.

Councilman Benjamin Muschlitz asked the commission to recommend three names to fill one of the vacancies. The new council will decide whether it wants to hire for the second position or cover the hours with part-timers.

Council has previously discussed saving money by not spending the money for providing psychological tests and physicals for all three potential officers, which is required for certification under the code, one councilman said. He said the deviation from policy caused dissatisfaction.